Numerical on material usage variance

Q.  In a manufacturing firm, the standard quantity of material was set at 10 kg and standard price was fixed at Rs. 2 per kg. The actual quantity consumed was 12 kg and the actual price paid was Rs 1.90 per kg. Determine material usage variance.
- Published on 08 Sep 15

a. Rs 4 favorable
b. Rs 4 unfavorable
c. Rs 2.80 unfavorable
d. Rs 1.20 favorable

ANSWER: Rs 4 unfavorable

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